Interim Results for the six months ended 31 July 2017
Walker Greenbank PLC (AIM: WGB), the luxury interior furnishings group, is pleased to announce its interim results for the six month period ended 31 July 2017.
- Sales up 29.9% to £54.3 million (H1 2016: £41.8 million) including £10.3 million from Clarke & Clarke, the fabrics and wallpaper business acquired in October 2016
- Overseas Brands sales growth and a strong revenue contribution from Clarke & Clarke offset a weaker UK performance
- Adjusted underlying profit before tax* up 55.3% at £5.9 million (H1 2016: £3.8 million)
- Licensing income up 21.1% in reportable currency, 17.9% in constant currency, at £1.3 million driven by new licensing agreements signed in the prior financial year including blinds in the UK and bedding in the US and Asia
- Final settlement of the insurance claim in respect of the flood in December 2015 at Standfast & Barracks. These interim results include the recognition of £1.3 million (H1 2016: £3.3 million) of insurance reimbursements for loss of profits and net proceeds for asset replacement
- Underlying profit from operations** up 52.8% at £5.5 million (H1 2016: £3.6 million)
- Total statutory profit from operations at £4.8 million (H1 2016: £5.3 million) due to acquisition costs
- Adjusted earnings per share* up 39.4% at 6.86 pence (H1 2016: 4.92 pence)
- Interim dividend up 25.5% at 0.69 pence per share (H1 2016: 0.55 pence per share)
* Excludes accounting charges relating to share-based incentives, defined benefit pension charge and non-underlying items, see note 6.
** Excludes acquisition costs and Standfast flood-related costs.
Terry Stannard, the Chairman of Walker Greenbank, said:
Our results for the first half of this year reflect a strong contribution from last year's acquisition of Clarke & Clarke, a positive export performance and significant growth in licensing.
Brand sales in the third quarter of the prior year included the invoicing of a backlog of flood-affected orders from the first half of the year. Against this comparator, in the first nine weeks of the current half year Brand sales excluding Clarke & Clarke were down 3.8% in reportable currency, down 4.8% in constant currency, but including Clarke & Clarke were up 31.7% in reportable currency.
Encouragingly, the Brands' order intake is growing ahead of last year and is on an improving trend in the run-up to our key autumn selling period. Subject to this momentum continuing, the Board expects to meet its expectations for the full year.
A meeting for analysts will be held at 10.00 a.m. today, 4 October 2017, at the offices of Buchanan, 107 Cheapside, London EC2V 6DN. For further details, contact Buchanan on 020 7466 5000.
For further information:
|Walker Greenbank PLC||+44 (0) 1895 221068|
|Investec Bank plc|
|Buchanan||+44 (0) 20 7466 5000|
|John Sach, Chief Executive|
|Mike Gant, Chief Financial Officer|
|Caroline Geary, Company Secretary|
|Investec Bank plc||+44 (0) 20 7597 5970|
|Garry Levin/David Anderson/Alex Wright - Nominated Adviser|
|Henry Reast - Corporate Broking|